Staffing Leasing in China: How It Works and What Employers Should Know
For foreign businesses managing a workforce in China, the employment relationship is not always structured as a straightforward direct hire. Staffing leasing is one of the alternative arrangements that companies encounter, particularly when engaging workers through labour agencies or when exploring flexible workforce solutions. Understanding how it works, what regulations govern it, and where it differs from other employment models helps employers make better-informed decisions about how to structure their China workforce. What Staffing Leasing Is Staffing leasing in China, formally known as labour dispatch, is an arrangement in which a licensed staffing agency formally employs workers and then dispatches them to work at a client company. The staffing agency is the legal employer of record. The worker performs their duties at the client's premises under the client's day-to-day management, but the employment contract is between the worker and the agency, not between the wo...